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Cenvat Credit

K S Prasad (Manager Accounts) (105 Points)

11 December 2009

Dear All,

We are making payment to contractor for constructing our new factory. This payment includes Service Tax also.

Now the question is we can avail this service tax as cenvat credit ?

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8 Replies

Shyam Lal Naik (Service) (6156 Points)
Replied 11 December 2009

The definition of input service includes services used in relation to setting up, modernization, renovation or repairs of a factory.

Cenvat admissible in your case.

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Ram Avtar Singh (Nagari Sultanpur U.P.Delhi) (14487 Points)
Replied 11 December 2009

Yes you can take service tax credit.

Prabeer (B. COM (H) CA & CS Final) (5484 Points)
Replied 11 December 2009


"	The definition of input service includes services used in relation to setting up, modernization, renovation or repairs of a factory. Cenvat admissible in your case.	"

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K S Prasad (Manager Accounts) (105 Points)
Replied 11 December 2009

Originally posted by :Shyam Lal Naik
"	The definition of input service includes services used in relation to setting up, modernization, renovation or repairs of a factory. Cenvat admissible in your case.	"

Thank you sir,

But as per the Central excise Inspector, it is not allowable as cenvat credit. kindly inform any circular issued by excise authority as these service tax is allowed as cenvat credit

NARENDER PAWAR (CA final Student) (337 Points)
Replied 11 December 2009

yes u claim cenvat credit of service tax if u r in composition scheme, but if u r opted abtment scheme than u can not claim cenvat credit of service tax.